The Law of Diminishing Returns Implies That

question 50

Multiple Choice

The Law of Diminishing Returns implies that:

• A) MPP is declining
• B) productivity will eventually decrease
• C) goods are not scarce
• D) TPP will eventually become negative

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Definitions:

Cost Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's unit cost.

Monopolist

An entity that has exclusive control over the supply of a particular product or service, and thus the power to influence the market price.

Marginal Revenue

The supplementary income earned from the sale of one extra unit of a good or service.

Pink Flamingo

a brightly colored bird known for its long legs and neck, often associated with decorative lawn ornaments in popular culture.